Business Law: Sources, Role of Government, Impact on Business, Types of Organizations, and Management and Funding

This document discusses the different sources of law in the Potato Council, the role of government in law making, the potential impact of contract law and employment law on business, the formation of different types of business organizations, and how businesses are managed and funded. It provides insights into the legal aspects of business law and highlights the importance of effective management and funding for businesses.

Business Law

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
LO 1............................................................................................................................................3
P1- EXPLAIN THE DIFFERENT SOURCES OF LAW IN POTATO COUNCIL..................3
P2 – EXPLAIN THE ROLE OF GOVERNMENT IN LAW MAKING. EXPLAIN HOW
STATUTORY AND COMMON LAW ARE APPLIED IN THE COURT.................................4
P3Potential impact of contract law and employment law on business.......................................4
P4 Discuss about different type of business organizations are legal formed. ............................5
P5 Businesses organization managed and funded.......................................................................6
P6 Resolving disputes ................................................................................................................7
CONCLUSION....................................................................................................................................8
REFERENCES.....................................................................................................................................9

INTRODUCTION
The business law is also known as commercial law. It deals with the business and commerce
of the various organisations of the world. The business law is also considered as civil law which
deals with all the public laws and private laws. The business law deals with the making contracts of
the corporate sector, manufacturing contracts, sales contracts, employees contract with the
organizations. There are many countries which have adopted the civil code which contains the
comprehensive statement of their commercial roles (de Silva, 2017). The business laws are applied
to each and every organization of the world and the people who are working in any organization
have to follow all the rules and regulation which comes under business law.
The agricultural sector deals with the potato council. The potato council is an trade
organization which deals in the Irish potato and other commodities of the agriculture which were
made to meet up the demands of people during the world war 2.
LO 1
P1- EXPLAIN THE DIFFERENT SOURCES OF LAW IN POTATO COUNCIL
English legal system can be described as oldest framework that is working since 12th century.
It sets laws for the companies so that firms can run business in legal manner.
 Restriction in the import and export of Potato
During the time of world war 2, the UK government had applied restriction on the export of potato's
. This done because the government wants the people of UK to consume the potato for their own
use instead of providing direct relief to those countries who were in need of food and funds
(Featured on the UK parliament website, 2019).
 Equity in the law of Potato Council
The equity law of the Potato council was made by the farmers who were involved in doing the
farming of potato in the agricultural sector. This equity law was made to create an availability of
basic vegetable which was potato for all the people of this world.
 Potato Control law
The potato which were not packed or those potato which were distributed openly were banned by
the UK government. This was done to reduce the chances of infection which can be spread because
of selling of these potato's openly.

P2 – EXPLAIN THE ROLE OF GOVERNMENT IN LAW MAKING. EXPLAIN HOW
STATUTORY AND COMMON LAW ARE APPLIED IN THE COURT
The government made many laws regarding the potato policies of the country. The role of
the government in the law making policies were as follows:
 The laws are made by the government for supporting the organizations and their employees
with from the social issues an problems which may occur in future of the company.
 The government have the power to raise their voice against the opposition parties.
 In Potato Council Law policies Government strictly took the action to feed the people of
their own country first and the remaining will be exported to the other countries.
 The farmers who are working in the agricultural sector of producing the potato's, will be
provided with extra incomes in the form of bonuses from the government of UK (Featured
on the UK parliament website, 2019).
 This was done to increase the production of Potato's and motivate the farmers to produce
more and more.
Bill formation
In the first reading government authorities read the bill in parliament and in second reading
its principles are being taken into consideration. Now it moves to committee stage where detail
discussion is done on this bill. First stage is of report stage in which all the respective member in
parliament conduct debate on bill and after that speaker take the final decision on it. At last
modification is made and it comes gain for final reading in parliament
P3Potential impact of contract law and employment law on business
Employees laws and contract law have huge impact on the business both positive and

negative, this is important for company to understand this low and value of those law. In the self
employer means starting their own business, and employees gives employment to the people and
they have to follow employment low and give rights to their employer.
Employment law
This law always impact on the every aspect of the workplace. This law include rights
related to the wages, medical leaves, discrimination, family and many more. It is important for
company to know rights of the employees so they can work safely in the workplace. This is
necessary for company to look for their employees because they are important for company to run
day to day activities. Employees give their best toward their task which helps company to increase
their growth. Mangers should provide facilities to the employees and they should understand
impotence of the employees' law in the organization. Employees play key role in the organization
and without them they can not achieve their business objectives. This employment law Act is
implemented by government and every organization have to follow this law. Employees have
ability to help organization to achieve business objective. Employees laws are designed to protect
the right of the employees and it also cover almost all the expect of the employees and employer
both. These laws helps to make better relationship between employee and employees, For example
-if any organization is giving safety and giving equal wages to their employees then this will
decreases in the workplace and all the workers will work together.
Status of the employees and workers
Employees status
An employee is an individual who has entered into or works (or worked) under the terms of
a contract of employment. The contract can be expressly agreed (in writing or orally) or implied by
the nature of the relationship
 they work individually
 the employees need to be have some control over the way the employees carries out the
work
Workers status
worker status seen as an half way house between the self employed status and employee
status. Worker of the company are enable to few right more then employees :
 They get protection from the discrimination
 self employees status
Gig economy is the free market setting in which companies have right to come into temporary
contract for short duration (de Silva, 2017). Independent contracts made contract with these firms
but companies have to follow their norms to run the business.

Pimlico vs smith case is the great example of employment act in which Smith was working
as plumber and he was suffering from the health issues that is heart attract. Due to his illness he was
unable to work or perform its duties hence he has requested to minimise his working hour with
employer. But Pimlico firm has taken action against Smith and has terminated him. As smith was
disable hence company has done discrimination hence as per employment right act smith has right
to claim against the employer.
Factors Self employed Employees
Controlling rights Employer can not control
over its contractual workers
(Practical tax resources for
accountants and advisers,
2019)
Employer has control over
employees.
Employee benefit They cannot such benefit those
a permanent employee is
getting.
They get pension and other
benefit of employment.
Financial benefits Self-employed do not get
salaries as per national
minimum wages rate.
Employee get proper timely
salaries.
P4 Discuss about different type of business organizations are legal formed.
A business entity is a type of organization that mainly uses economic resources and also
involve the input which provide good and services to the customer. It also exchanging for money to
other type of goods and services. It is very important for business owner seriously consider the
different type of business organization such as Sole proprietorship, corporation, partnership etc. it
can be established with the form of legal aspects that influence by other taxes, personal concerns,
legal issues and financial concerns (de Silva, 2017). In this way, it can be identified the different
role in the global market in term of legal matters. There are different types of organization formed
through legal aspects and also follows all regulation in the business development.
S.No. Sole Trader: Partnership: Limited liability
company
Cooperative
Definition It is based on the
business owned by
one person which
holds entire process
of organization. it
becoming easy for
owner to set up and
least cost among
different ownership
It is based on two
or more person
who always
contribute
resources into
different entity. It
mainly used the
unlimited liability
which cannot go
under the personal
assets of limited
It is similar to the
partnership which
provide owner
with limited
liability and also
providing the
income advantage
of partnership. In
this organization.
the loss and profit
must be depended
It is based on
the business
organization
owned by
group of
individuals
that operates
for entire
mutual
benefits. A
person is

partners. on the limit
liability in
business
making up the
group in the
form of
members.
Legal forms It has unlimited
liability which
means the business
go after personal
assets of owner.
Sometimes, they
also faced the
problem through
legal aspects.
In context of legal,
sole proprietors
required to submit
the taxes quarterly
basis which may
including self-
employment tax
and also consists of
contribution
towards security.
This type of
organization do
not pay taxes
because their
profit and losses
are passed through
member, who
claim them to
return tax.
The owner of
organization
enjoying the
services
legalise
limited
liability but
have limited
involvement
in the business
operations and
functions. It
only based on
the directors
and other
elected group
from the
stakeholders
that control
overall
activities of
organization.
Example Salomon v A
Salomon & Co
limited is based on
the sole trader’s
firm in the form of
limited liability.
This sole trader firm
is established by Mr
Salomon in 1862. It
finance firm, it is
based on the
partnership
business which
always formed the
limited liability to
maintain business
in terms of
creditors, legal
It including banks
and other
insurance firm.
Sainsbury’s is
based on super
market firm
and have a
separate legal
personality
from its
owner. It can
be represented

has an involvement
of different
stakeholders that
pay up outstanding
debt owned.
parlance. It also
paid taxes filling of
individual partners.
in the stock
corporation by
share of
stocks.
Personal
financial
protection
None A general partner is
jointly and
severally liable for
the organization’s
debts
It depends on the
conditions
Loss of
investment
onlt if limited
company
unless
personal
guarantee.
Ownership One person 2 and More No limit shareholders
Finance Borrowing Borrowing Share issues borrowing
Saloman &Co ltd case is another case in which saloman has purchased the firm by paying some
amount but after sometime owner becomes unable to generate profit hence faced huge loss. Hence
individual was not able to repay the company’s liabilities. Liquidators are forcing salmon to repay
their money. Court passed the judgement that in the limited company owner or the main
shareholders are responsible for the repay or liquidity of firm hence in this case salmon is
responsible to repay all debts personally.

P5 Businesses organization managed and funded
Management of businesses is necessary for running businesses in sophisticated manner. Business
has objective to provide good quality product and services to customers and earn money. Any
businesses if it is small scale, micro businesses and large business etc. needs management and
strategic plan. If strategic plan of businesses is good then businesses can run away in well-formed
manner and owner can get good output from company. Customers and employees both plays
important role in company and enables to meet businesses objectives.
Manges a business effectively
 effective communication plays vital role in organization. If communication skills is good in
company then it assists to retain employees and customers. Proper communication is
important to retain employees in company. Management has good communication skills
then enables to communicate their employees. If manger of organization can allow their
employees to direct communicate rather to another source it can make communication
effective and manger enable4s to implement their strategic plans (de Silva, 2017). Manger
provides friendly atmosphere to employees at workplace so employees enables to solve
problems during working. Effective communication resolve conflicts between employees
and management.
 Dynamic environment is important for potato organization because it leads activeness in
company. Manager always provides changing environment to their employees, so they
become innovative thinking. Through dynamic environment manger prepare them for
situational condition.
 Timely brainstorming is plays crucial role in organization where employees invite their
employees in decision-making and allows them to share ideas and manger listen them
intently. It boosts confidence of employees to give the best performance in organization.
Funding of business:
 Manager acquire sources of funding for organizations where company leads crowdfunding
in their organization to raise money (Practical tax resources for accountants and advisers,
2019). In this funding large number of employees invest their money in company and
organizations raises their money. Crowdfunding is best source to earn funds.
 Bank loan and venture capital is best source of funding where company takes loan from
bank in low interest and raises their funds. Thus, company acquires funds. Co9mpoany gets
from ventures. Thus, company emerges funds. Organization financial dependent on ventures
be3cause they invest their money and company gets growth financially.

P6 Resolving disputes
There are various issues that can occurs in the business. Business dispute is very common in big
industries. The disputes can occurs between the employee, suppliers, purchasers, business partners,
contractors etc. In the potato council, several disputes are occurring between the inside or outside
people of the organization. If the company is unable to resolve the disputes that it may necessary to
claim at the court. These activities can helps the company to identify the major issues and also helps
in resoling outstanding debts, bills if any amount falls in the claim and also identify many
employment issues.
Potato council may use the alternative dispute resolution when any business contract issues
will occurs. Arbitration is a best process to resolve the issues of two parties. This process is
conducted outside the court. In this process, arbitrator plays a major role. Arbitrator listens the both
parties issues and discuss the case. Arbitrator will review the whole case and analysis its important
elements. Arbitrator also review the both parties arguments and claims. After all these, they can
give their decision by concerning on the both parties and their benefits.
Mediation is also a effective resolution process. This process is adopted by the coma0pny
when the disputes arise between multiple parties. The dispute is resolved by the mediator. It is
different process as compared to Arbitration. In this process the final decision is nit taken by the
mediator regarding the parties. Mediators have a main responsibility is to help the parties in their
disputes and encourage them to work for the company. All the process of dispute resolving will be
adopted by the potato council company of any dispute will arise in its organization. Law plays an
important role in organization to resolve the complex disputes in the company.
Arbitration: This is the technique in which one arbitrator is here who listen views of both parties
and resolve the problem between parties. Arbitrator ensure to take decision by considering legal
guidelines and pass the judgement in favour of right person (Practical tax resources for accountants
and advisers, 2019). Parties have great trust over the arbitrator hence decision of that person is
agreed by both involved persons.
CONCLUSION
From the above report, it is concluded that the business law is the major part of the law.
Business law helps the business owners, professionals and managers to make decision-making in a
very effective way. Effective legal system plays a vital role in any organization. It provides a
orderly, predictable and systematic mechanism for resolution of disputes. Law created huge impacts
on the businesses. If any changes occurs in the law, that means company have to change their
business law and its operations. Business law can affect the relationship of employer and

employees. It is very essential for the business to follow the government regulations related to
business law. Company should have followed the business law in employment policies, hiring
policy, working hours' policy etc. various legal issues can occurs in the business sucg as legal
issues, discrimination issues, dissatisfied customers etc. Several types of business organization that
are legally formed like sole proprietorship, limited liability partnership, joint stock company and
partnership firm. Application of law is very necessary for the company because it provides a great
recognition of the company in the market.

REFERENCES
Books and Journals
de Silva, C., 2017. Alix Adams, Law for business students Ewan MacIntyre, Business law. The Law
Teacher,.(4). pp.527-529.
Featured on the UK parliament website. 2019. [Online]. Accessed through
<https://www.parliament.uk/>
Practical tax resources for accountants and advisers. 2019. [Online]. Accessed through
<https://www.rossmartin.co.uk/>